If you walk off a plane in a new country you feel it. You may not yet understand what you feel, but you know something is different. The smells, the smiles, the mannerisms, the food, the logistics of getting through the terminal, the attentiveness of airport staff or the attitudes of security are all…different. Some of these differences are too subtle to describe. Others hit you in the face like a bag of bricks.

The smells, the smiles, the mannerisms, the food, the logistics of getting through the terminal, the attentiveness of airport staff or the attitudes of security are all…different.

Plan in Differences

When you are in a foreign country, new city, or even your neighbor’s home, there are differences that impact you. For a business, these geographical, cultural, linguistic, market, and environment differences can and will impact your strategy. Part of the planning process is identifying what you know and what you know you don’t know.

Most growing companies highlight international markets as channels for future growth but many senior managers and executives have little to no experience doing business abroad. In more than a decade of working in foreign markets and helping decision makers plan and execute strategy there are still areas that consistently come up. I wanted to highlight a few that we see time and time again. We often see decisions made on market research that is data not intelligence. Little time and effort is put into interpreting that information and identifying the unique aspects of doing business in a foreign market. Planning for the inherent differences better prepares your team and business model to adapt to local market conditions and be competitive for market share.

Evaluate Your Value Proposition

Market attractiveness is a no brainer but have you really evaluated the opportunities…and the risks? Your team should be considering industry growth, regulatory differences, and even local market differences. Do you have to change the product or packaging to adapt to the local market? Does the local environment heavily favor domestic companies or will it accept international firms? Can you leverage your foreign “uniqueness” to capture market share?

Being successful in a foreign market requires you to understand public perceptions of your brand. In certain markets this can work to your advantage and in some they work against you. In China, U.S. healthcare products must be sold at a premium to Chinese products. However, western products often do very well because of the perception. In Africa, will your business be competitive compared to other nation’s investments? In the U.S., will your product or service be welcomed with open arms or will you have to change the narrative?

Being able to articulate your value proposition to your target market in a manner consistent with their expectations and preferences is key to making your foreign product or service a local hit.

Evaluate Alternate Markets

The majority of U.S. businesses we work with often come to us to help plan their China strategy. More often then not, what they are asking could be accomplished in an alternate market with a difference set up benefits they never considered. Could your product sell in Southeast Asia? Would laws allow you to better protect your intellectual property in India and still hit your revenue/cost targets? Does Hong Kong offer better tax advantages versus Singapore or South Africa? Does Myanmar’s culture better fit into your digital strategy than Vietnam’s? There are many factors to consider and NO RIGHT ANSWERS.

Each market offers different benefits and risks. Rule of law, ease of doing business, pre-established industry clusters, industry growth, political growth, political risk, etc. When planning your strategy you should evaluate other markets. These can provide ready alternatives should your assumptions be disproven.

Have more questions? Ask me!

Brandon Hughes is the CEO, Founder, and Chief Strategy Consultant at FAO Global. . Leveraging international experiences from the U.S. military, geopolitical think tanks, and overseas business he help companies navigate between emerging and established markets.

This article was originally published on LinkedIn at https://www.linkedin.com/pulse/global-strategy-three-factors-consider-international-brandon/